How often are the Royalty and Advertising Fees paid to Afuri Ramen Dumpling?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
You will pay to us 5% of your Revenue (as defined in Section 2.6) each month for the preceding month as a "Royalty Fee".
The precise timing and method of payment for the Royalty Fee will be as described in our Operations Manual.
- 2.3 Advertising Fee.
You will pay to us 1% of your total Revenue (as defined in Section 2.6) each month for the preceding month as an "Advertising Fee".
The precise timing and method of payment for the Royalty Fee will be as described in our Operations Manual.
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, both the Royalty Fee and the Advertising Fee are paid monthly. Specifically, the franchisee is required to pay 5% of their Revenue each month for the preceding month as a Royalty Fee. Similarly, the franchisee must pay 1% of their total Revenue each month for the preceding month as an Advertising Fee.
The FDD indicates that the precise timing and method of payment for both the Royalty Fee and the Advertising Fee will be detailed in Afuri Ramen Dumpling's Operations Manual. This means that while the FDD specifies the monthly payment frequency, the exact day of the month and the acceptable payment methods are outlined elsewhere.
For a prospective Afuri Ramen Dumpling franchisee, this monthly payment structure means that they need to ensure consistent cash flow management to meet these obligations. The franchisee should consult the Operations Manual to understand the specific payment deadlines and methods to avoid any late payment penalties or other issues. Additionally, franchisees should factor in these ongoing fees when projecting their monthly expenses and profitability.